diff --git a/public/app/features/dashboard-scene/scene/DashboardControls.test.tsx b/public/app/features/dashboard-scene/scene/DashboardControls.test.tsx
index 878f6cc5e87..dc4c492bf92 100644
--- a/public/app/features/dashboard-scene/scene/DashboardControls.test.tsx
+++ b/public/app/features/dashboard-scene/scene/DashboardControls.test.tsx
@@ -1,7 +1,7 @@
 import { render } from '@testing-library/react';
 
 import { selectors } from '@grafana/e2e-selectors';
-import { SceneDataLayerControls, SceneVariableSet, TextBoxVariable, VariableValueSelectors } from '@grafana/scenes';
+import { SceneVariableSet, TextBoxVariable } from '@grafana/scenes';
 
 import { DashboardControls, DashboardControlsState } from './DashboardControls';
 import { DashboardScene } from './DashboardScene';
@@ -10,7 +10,6 @@ describe('DashboardControls', () => {
   describe('Given a standard scene', () => {
     it('should initialize with default values', () => {
       const scene = buildTestScene();
-      expect(scene.state.variableControls).toEqual([]);
       expect(scene.state.timePicker).toBeDefined();
       expect(scene.state.refreshPicker).toBeDefined();
     });
@@ -38,9 +37,7 @@ describe('DashboardControls', () => {
     });
 
     it('should render visible controls', async () => {
-      const scene = buildTestScene({
-        variableControls: [new VariableValueSelectors({}), new SceneDataLayerControls()],
-      });
+      const scene = buildTestScene({});
       const renderer = render(<scene.Component model={scene} />);
 
       expect(await renderer.findByTestId(selectors.pages.Dashboard.Controls)).toBeInTheDocument();
@@ -55,7 +52,6 @@ describe('DashboardControls', () => {
         hideTimeControls: true,
         hideVariableControls: true,
         hideLinksControls: true,
-        variableControls: [new VariableValueSelectors({}), new SceneDataLayerControls()],
       });
       const renderer = render(<scene.Component model={scene} />);
 
diff --git a/public/app/features/dashboard-scene/scene/DashboardControls.tsx b/public/app/features/dashboard-scene/scene/DashboardControls.tsx
index 9b1f95097d0..423d3e3e054 100644
--- a/public/app/features/dashboard-scene/scene/DashboardControls.tsx
+++ b/public/app/features/dashboard-scene/scene/DashboardControls.tsx
@@ -4,7 +4,6 @@ import { GrafanaTheme2, VariableHide } from '@grafana/data';
 import { selectors } from '@grafana/e2e-selectors';
 import {
   SceneObjectState,
-  SceneObject,
   SceneObjectBase,
   SceneComponentProps,
   SceneTimePicker,
@@ -22,9 +21,10 @@ import { PanelEditControls } from '../panel-edit/PanelEditControls';
 import { getDashboardSceneFor } from '../utils/utils';
 
 import { DashboardLinksControls } from './DashboardLinksControls';
+import { DashboardScene } from './DashboardScene';
+import { VariableControls } from './VariableControls';
 
 export interface DashboardControlsState extends SceneObjectState {
-  variableControls: SceneObject[];
   timePicker: SceneTimePicker;
   refreshPicker: SceneRefreshPicker;
   hideTimeControls?: boolean;
@@ -73,7 +73,6 @@ export class DashboardControls extends SceneObjectBase<DashboardControlsState> {
 
   public constructor(state: Partial<DashboardControlsState>) {
     super({
-      variableControls: [],
       timePicker: state.timePicker ?? new SceneTimePicker({}),
       refreshPicker: state.refreshPicker ?? new SceneRefreshPicker({}),
       ...state,
@@ -119,8 +118,7 @@ export class DashboardControls extends SceneObjectBase<DashboardControlsState> {
 }
 
 function DashboardControlsRenderer({ model }: SceneComponentProps<DashboardControls>) {
-  const { variableControls, refreshPicker, timePicker, hideTimeControls, hideVariableControls, hideLinksControls } =
-    model.useState();
+  const { refreshPicker, timePicker, hideTimeControls, hideVariableControls, hideLinksControls } = model.useState();
   const dashboard = getDashboardSceneFor(model);
   const { links, editPanel } = dashboard.useState();
   const styles = useStyles2(getStyles);
@@ -137,7 +135,12 @@ function DashboardControlsRenderer({ model }: SceneComponentProps<DashboardContr
       className={cx(styles.controls, editPanel && styles.controlsPanelEdit)}
     >
       <Stack grow={1} wrap={'wrap'}>
-        {!hideVariableControls && variableControls.map((c) => <c.Component model={c} key={c.state.key} />)}
+        {!hideVariableControls && (
+          <>
+            <VariableControls dashboard={dashboard} />
+            <DataLayerControls dashboard={dashboard} />
+          </>
+        )}
         <Box grow={1} />
         {!hideLinksControls && !editPanel && <DashboardLinksControls links={links} dashboard={dashboard} />}
         {editPanel && <PanelEditControls panelEditor={editPanel} />}
@@ -153,6 +156,18 @@ function DashboardControlsRenderer({ model }: SceneComponentProps<DashboardContr
   );
 }
 
+function DataLayerControls({ dashboard }: { dashboard: DashboardScene }) {
+  const layers = sceneGraph.getDataLayers(dashboard, true);
+
+  return (
+    <>
+      {layers.map((layer) => (
+        <layer.Component model={layer} key={layer.state.key} />
+      ))}
+    </>
+  );
+}
+
 function getStyles(theme: GrafanaTheme2) {
   return {
     controls: css({
diff --git a/public/app/features/dashboard-scene/scene/VariableControls.tsx b/public/app/features/dashboard-scene/scene/VariableControls.tsx
new file mode 100644
index 00000000000..dc4dc9653a5
--- /dev/null
+++ b/public/app/features/dashboard-scene/scene/VariableControls.tsx
@@ -0,0 +1,70 @@
+import { css } from '@emotion/css';
+
+import { VariableHide } from '@grafana/data';
+import { selectors } from '@grafana/e2e-selectors';
+import { sceneGraph, useSceneObjectState, SceneVariable, SceneVariableState, ControlsLabel } from '@grafana/scenes';
+
+import { DashboardScene } from './DashboardScene';
+
+export function VariableControls({ dashboard }: { dashboard: DashboardScene }) {
+  const variables = sceneGraph.getVariables(dashboard)!.useState();
+
+  return (
+    <>
+      {variables.variables.map((variable) => (
+        <VariableValueSelectWrapper key={variable.state.key} variable={variable} />
+      ))}
+    </>
+  );
+}
+
+interface VariableSelectProps {
+  variable: SceneVariable;
+}
+
+export function VariableValueSelectWrapper({ variable }: VariableSelectProps) {
+  const state = useSceneObjectState<SceneVariableState>(variable, { shouldActivateOrKeepAlive: true });
+
+  if (state.hide === VariableHide.hideVariable) {
+    return null;
+  }
+
+  return (
+    <div className={containerStyle} data-testid={selectors.pages.Dashboard.SubMenu.submenuItem}>
+      <VariableLabel variable={variable} />
+      <variable.Component model={variable} />
+    </div>
+  );
+}
+
+function VariableLabel({ variable }: VariableSelectProps) {
+  const { state } = variable;
+
+  if (variable.state.hide === VariableHide.hideLabel) {
+    return null;
+  }
+
+  const labelOrName = state.label || state.name;
+  const elementId = `var-${state.key}`;
+
+  return (
+    <ControlsLabel
+      htmlFor={elementId}
+      isLoading={state.loading}
+      onCancel={() => variable.onCancel?.()}
+      label={labelOrName}
+      error={state.error}
+      layout={'horizontal'}
+      description={state.description ?? undefined}
+    />
+  );
+}
+
+const containerStyle = css({
+  display: 'flex',
+  // No border for second element (inputs) as label and input border is shared
+  '> :nth-child(2)': css({
+    borderTopLeftRadius: 0,
+    borderBottomLeftRadius: 0,
+  }),
+});
diff --git a/public/app/features/dashboard-scene/serialization/transformSaveModelSchemaV2ToScene.ts b/public/app/features/dashboard-scene/serialization/transformSaveModelSchemaV2ToScene.ts
index 6cb7c7462c1..10ccc34252f 100644
--- a/public/app/features/dashboard-scene/serialization/transformSaveModelSchemaV2ToScene.ts
+++ b/public/app/features/dashboard-scene/serialization/transformSaveModelSchemaV2ToScene.ts
@@ -10,14 +10,12 @@ import {
   GroupByVariable,
   IntervalVariable,
   QueryVariable,
-  SceneDataLayerControls,
   SceneRefreshPicker,
   SceneTimePicker,
   SceneTimeRange,
   SceneVariable,
   SceneVariableSet,
   TextBoxVariable,
-  VariableValueSelectors,
 } from '@grafana/scenes';
 import {
   AdhocVariableKind,
@@ -191,7 +189,6 @@ export function transformSaveModelSchemaV2ToScene(dto: DashboardWithAccessInfo<D
         annotationLayers,
       }),
       controls: new DashboardControls({
-        variableControls: [new VariableValueSelectors({}), new SceneDataLayerControls()],
         timePicker: new SceneTimePicker({
           quickRanges: dashboard.timeSettings.quickRanges,
         }),
diff --git a/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.test.ts b/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.test.ts
index 546c8e95038..0e96bc019bd 100644
--- a/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.test.ts
+++ b/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.test.ts
@@ -5,7 +5,6 @@ import {
   AdHocFiltersVariable,
   behaviors,
   ConstantVariable,
-  SceneDataLayerControls,
   SceneDataTransformer,
   SceneGridLayout,
   SceneGridRow,
@@ -836,7 +835,6 @@ describe('transformSaveModelToScene', () => {
       const scene = transformSaveModelToScene({ dashboard: dashboard_to_load1 as DashboardDataDTO, meta: {} });
 
       expect(scene.state.$data).toBeInstanceOf(DashboardDataLayerSet);
-      expect(scene.state.controls!.state.variableControls[1]).toBeInstanceOf(SceneDataLayerControls);
 
       const dataLayers = scene.state.$data as DashboardDataLayerSet;
       expect(dataLayers.state.annotationLayers).toHaveLength(4);
@@ -864,7 +862,6 @@ describe('transformSaveModelToScene', () => {
       const scene = transformSaveModelToScene({ dashboard: dashboard_to_load1 as DashboardDataDTO, meta: {} });
 
       expect(scene.state.$data).toBeInstanceOf(DashboardDataLayerSet);
-      expect(scene.state.controls!.state.variableControls[1]).toBeInstanceOf(SceneDataLayerControls);
 
       const dataLayers = scene.state.$data as DashboardDataLayerSet;
       expect(dataLayers.state.alertStatesLayer).toBeDefined();
@@ -877,7 +874,6 @@ describe('transformSaveModelToScene', () => {
       const scene = transformSaveModelToScene({ dashboard: dashboard_to_load1 as DashboardDataDTO, meta: {} });
 
       expect(scene.state.$data).toBeInstanceOf(DashboardDataLayerSet);
-      expect(scene.state.controls!.state.variableControls[1]).toBeInstanceOf(SceneDataLayerControls);
 
       const dataLayers = scene.state.$data as DashboardDataLayerSet;
       expect(dataLayers.state.alertStatesLayer).toBeDefined();
diff --git a/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.ts b/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.ts
index aaed4127842..0b7435c1fe9 100644
--- a/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.ts
+++ b/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.ts
@@ -9,7 +9,6 @@ import {
   SceneGridRow,
   SceneTimeRange,
   SceneVariableSet,
-  VariableValueSelectors,
   SceneRefreshPicker,
   SceneObject,
   VizPanelMenu,
@@ -17,7 +16,6 @@ import {
   VizPanelState,
   SceneGridItemLike,
   SceneDataLayerProvider,
-  SceneDataLayerControls,
   UserActionEvent,
   SceneInteractionProfileEvent,
   SceneObjectState,
@@ -278,7 +276,6 @@ export function createDashboardSceneFromDashboardModel(oldModel: DashboardModel,
       $behaviors: behaviorList,
       $data: new DashboardDataLayerSet({ annotationLayers, alertStatesLayer }),
       controls: new DashboardControls({
-        variableControls: [new VariableValueSelectors({}), new SceneDataLayerControls()],
         timePicker: new SceneTimePicker({
           quickRanges: oldModel.timepicker.quick_ranges,
         }),